Note: W2G occurs at $1200 not $2000. In some cases it will make it tough to play more than quarters. If you are a consistent winner (year in and year out) then in theory you will always have the tax liability just like if you work a normal job (except no Social Security). Up to you.
I have told this story before:
playing 3 line quarter Super Times Pay 9-6 jacks my mom gets dealt AKT4 of clubs and the 4 of spades. Normally you hold AKT if the fifth card is not a penalty to the RF. (The 4s is not.) My mom does not have enough income to generate Federal Tax but this was in IN where a state tax of 3.4% is withheld. I told my mom to draw to the 3RF not thinking about the 3x multiplier up which reduces the value of the RF enough to swing the play. Note: My mom gladly had the $102 withheld from her $3000 hit!
On Tuesday, January 20, 2015 11:22 AM, "m h kickboyface@yahoo.com [vpFREE]" <vpFREE@yahoogroups.com> wrote:
hi there,
I've rolled around an idea for some time now and would be interested in hearing any informed opinion...
if you play a 25¢ VP game, the standard royal flush payout is $1,000 which is all well and good. and although this should be reported as income, it doesn't generate you a W-2G by default.
if you play a 50¢ game, the RF will earn you $2,000 AND a W2-G (for crossing that magic $1999 line).
I'm not sure what the exact math numbers are in this situation, but it seems like if you're playing something like FPDW or 10/7 DB, the tax burden generated by playing that extra quarter credit may be enough to negate the miniscule positive edge you have in those games ... if true, it seems like you're mathematically better off (at least from an expectation point-of-view) to stick with the quarters and not play the Kennedy halves...
or is there another nuance here that I'm missing?
m.
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Posted by: Howard Stern <pyiddy@att.net>
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